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Investors interested in stocks from the Business - Information Services sector have probably already heard of INTERTEK GP (IKTSY) and Verisk Analytics (VRSK). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

INTERTEK GP and Verisk Analytics are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that IKTSY likely has seen a stronger improvement to its earnings outlook than VRSK has recently. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

IKTSY currently has a forward P/E ratio of 20.44, while VRSK has a forward P/E of 41.74. We also note that IKTSY has a PEG ratio of 2.94. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VRSK currently has a PEG ratio of 3.40.

Another notable valuation metric for IKTSY is its P/B ratio of 5.83. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, VRSK has a P/B of 135.44.

These metrics, and several others, help IKTSY earn a Value grade of B, while VRSK has been given a Value grade of D.

IKTSY has seen stronger estimate revision activity and sports more attractive valuation metrics than VRSK, so it seems like value investors will conclude that IKTSY is the superior option right now.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.